It’s a short work week thanks to Labor Day, but that meant a long weekend. In addition to work-related things (I wrote, filed, and organized until I could write, file, and organize no more), I baked apple muffins—’tis the season!—made homemade pasta, did some weeding, and completely disassembled and reassembled a lawn mower carburetor. (Thank you, YouTube.)

I was feeling pretty accomplished about that last one until I promptly ran over a yellow jacket nest with said lawn mower. That took a little of the shine off my small-engine-repair victory.

Still, the break was appreciated. I almost hated to see it end. Almost.

But just like that, we’re back to work—which is fitting, because it’s National Payroll Week. So it’s a good time to take a closer look at something many of us receive regularly but don’t always examine closely: the paycheck. I broke down 10 things to know about your paycheck and payroll taxes, including what’s being withheld, where the money goes, and why the numbers on your pay stub matter.

The U.S. Tax Court also announced some big changes to make it easier for taxpayers to have their cases heard. The Court added five new trial cities—Austin, Charlotte, Newark, Orlando, and Sacramento—and, for the first time, taxpayers with regular cases can request any of its 79 trial locations. There’s a bigger experiment coming, too: beginning no earlier than fall 2027, the Court plans to test a new “reporting calendar” that would assign some cases to judges before setting a trial date, potentially changing how those cases move toward settlement or trial.

And because scammers apparently do not take Labor Day off, keep an eye out for a new scheme. Thieves are borrowing the familiar MyChart name to send emails and texts offering a free “MyChart Medicare Kit” or claiming that medical test results are ready. The links lead to fake MyChart pages designed to collect passwords, credit card numbers, and other personal information—and some versions even try to trick users into downloading malware. If you get an unexpected MyChart message, skip the link and open the app or your healthcare provider’s official patient portal directly.

Let’s talk more tax.

Q: In an effort to save money and stay healthy, I have started riding my bicycle to work. I thought I remembered that it was deductible, but now I can’t find any information. Can I claim a tax break for biking to work?

A: Sadly, no. Your trip between home and your regular workplace is considered a personal commute, whether you drive, take the train, walk, or ride a bike, and that’s not deductible on your federal income tax return. 

That said, you are correct that bicycle commuters once had a tax benefit. Before 2018, employers could reimburse employees for certain bicycle commuting expenses and, within limits, exclude those reimbursements from the employee's taxable income. The Tax Cuts and Jobs Act (TCJA) suspended that exclusion.

The suspension was scheduled to end after 2025, but the One Big Beautiful Bill Act (OBBBA) permanently eliminated the exclusion beginning in 2026. So an employer can still choose to help cover your bicycle commuting costs, but you’ll generally have to include that reimbursement in your taxable income. Still, kudos to you for committing to a healthier commute!

A casualty loss is a loss resulting from a sudden, unexpected, or unusual event—think hurricanes, fires, and similar events. For years, casualty losses were generally discussed alongside theft losses, and taxpayers could claim them as deductions, subject to limits. But the TCJA changed the rules, generally limiting personal casualty and theft loss deductions to losses connected with federally declared disasters. Beginning in 2026, Congress made that limitation permanent and added language confirming that certain losses connected with state-declared disasters may also qualify.

Those limitations hit scam victims particularly hard, including some who might have been entitled to a loss deduction before 2018. Now, an important exception under Section 165(c)(2) may allow a deduction if the theft arose from a transaction with a profit motive. In a 2025 memo, IRS Chief Counsel outlined several common scam scenarios and concluded that some victims may qualify—including taxpayers tricked into transferring money because they believed they were protecting an investment. The loss must qualify as theft under applicable law, there must be no reasonable prospect of recovery, and the transaction must have been entered into for profit. By contrast, victims of purely personal scams, such as romance or kidnapping scams, generally don't meet that test.

And records matter. To claim a casualty or theft loss, you need to establish what you lost, your basis, the amount of any reimbursement, and other facts supporting the deduction. If those records were lost with your property—or you simply can’t find them—don’t assume you’re out of luck. As I explained, you can often reconstruct tax records using IRS transcripts, bank and credit card statements, third-party records, photographs, appraisals, and other evidence.

One of the most infamous scams that led to tax breaks for victims involved Bernie Madoff. His Ponzi scheme was commonly described as a fraud worth approximately how much?

A. $6.5 billion

B. $17.5 billion

C. $35 billion

D. $65 billion

Find the answer at the bottom of this newsletter.

This week’s Getting To Know You Tuesday features Samantha M. Besnoff, CPA, owner of Your Financial Maven® LLC in Lititz, Pennsylvania. Samantha has spent more than 30 years in accounting—and says she fell in love with tax along the way. She explains how she took the leap to start her own practice, why small business owners need to pay closer attention to entity structure, how she uses AI as a tool (not the final answer), and her sensible plans for an unexpected tax refund: save some and head down the shore.

Get to know Samantha. And if you know someone who should be featured in a future Getting To Know You Tuesday, you’ll find nomination and submission information at the bottom of the post.

If you make estimated tax payments, your next payment is due September 15. This is also a good time to check whether your estimates still make sense. If your income—or your withholding—has changed significantly since you calculated your payments earlier this year, you may need to adjust. Estimated taxes are intended to keep you reasonably current as you earn income during the year, so don't automatically assume the amount you calculated in April is still the right number in September.

September 15, 2026 — Estimated tax payments due. The third estimated tax payment for 2026 is due for individuals who make quarterly payments. The fourth and final payment is due January 15, 2027. 

September 15, 2026 — Extended partnership and S corporation returns due. Calendar-year partnerships and S corporations with extensions generally must file their 2025 Forms 1065 and 1120-S.

October 15, 2026 — Extended individual income tax returns due. This is the big one for individuals who requested a timely extension to file their 2025 Form 1040. (Remember, it’s an extension to file, not to pay: tax was due April 15.)

October 15, 2026 — Extended C corporation returns due. Calendar-year corporations that timely requested an extension generally must file Form 1120. 

September 15–17 — IRS Nationwide Tax Forum, San Diego, CA
The final IRS Nationwide Tax Forum of 2026, featuring federal tax updates, practitioner issues, IRS speakers, TAS, and more.

September 21–22 — NATP Tax Forum, Minneapolis, MN
Practitioner-focused federal tax education covering S corporations, rentals, planning, compliance, and more.

September 30–October 1 — NATP Tax Forum, Philadelphia, PA
The same NATP program—and obviously in a great city!

September 29 — Advisory Amplified, Minneapolis, MN
As for me? I’m headed to Advisory Amplified in Minneapolis à la Mary Tyler Moore.  As someone who runs my own firm, I totally get that conferences can be expensive. So if you’re a solo, too, register using this code for 20% off: Taxgirl-roadie

IRS offers potential relief from complicated foreign-currency rules. The IRS has proposed an election that would allow certain controlled foreign corporations (CFCs) to avoid computing or recognizing foreign-currency gain or loss under section 987 while the election is in effect. The proposal aims to reduce compliance burdens while preventing taxpayers from using the election to avoid tax on previously untaxed foreign-currency gains.

The IRS must prove it mailed a notice. In Wales v. Commissioner, the Tax Court found that the IRS failed to prove it sent an innocent-spouse determination by certified or registered mail, so the 90-day filing period never started. A good reminder to check the envelope and the IRS’s proof of mailing.

New R&D accounting method procedures are available. The IRS issued Rev. Proc. 2026-32 with updated accounting-method-change procedures reflecting the new rules for research expenditures, along with changes for certain residential construction contracts.

The Fourth Circuit upholds a $2.9 million FBAR penalty. In United States v. Rund, the court reaffirmed that recklessness can satisfy the civil FBAR willfulness standard and upheld a $2.9 million penalty.

IRS funding fight gets a temporary reprieve. A continuing resolution keeps the government funded through December 11 and temporarily maintains IRS annual funding at roughly $11.2 billion while preventing another $11.6 billion rescission of supplemental funds. 

The tax world is full of interesting people. Here’s who’s making news.

The Senate Finance Committee will consider two tax-related nominations on September 15: James Gadwood to serve as IRS Chief Counsel and Assistant General Counsel at Treasury, and Andrew A. De Mello to serve as a judge on the U.S. Tax Court. The nomination hearing begins at 10 a.m. ET and will be livestreamed by the committee.

The answer is D.

Roughly $65 billion represented the balances shown on customers’ final account statements—including investment gains that never existed. By comparison, customers who filed claims had lost about $17.5 billion in principal, a reminder of just how much of Madoff’s supposed fortune existed only on paper.

Tax pros are in the home stretch for the September 15 entity filing deadline, which means there are a lot of long days (and probably late nights) happening right now. If your tax professional seems a little frazzled this week, be kind—and maybe wait until after Tuesday to ask that question that can wait until after Tuesday.

Have thoughts about the newsletter? I’d love to hear what you liked, what you didn’t, and what you’d like to see more of. You can email me here.